Piper Sandler upgraded Elanco Animal Health to Overweight, raising its price target to $30 from $24. The broker cited Elanco's growing traction with large corporate veterinary groups, moving it from a distant fourth-choice supplier to a potential second. This shift is driven by improved execution and a more competitive product lineup.

The upgrade hinges on Elanco’s upcoming product Befrena, which received strong feedback at the VMX veterinary conference. Piper Sandler believes Befrena could become the second-largest product in its category, supporting broader portfolio sales. The combined impact of Befrena, Quattro, and Zenrelia gives Elanco a stronger commercial proposition.

Conversely, Piper Sandler downgraded Zoetis to Neutral, slashing its target to $135 from $190. The firm sees an innovation gap and expects near-term slowdowns. While Zoetis has the strongest long-term pipeline, near-term launches may not deliver sufficient value in the current consumer spending environment, and growth for Librela remains uncertain.